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2019 (6) TMI 1359 - HC - VAT and Sales TaxRequirement of pre-deposit to entertain the revision petition - Section 82(2A) of the AVAT Act, 2003 - HELD THAT - Upon reading of Section 82(2A) of AVAT Act, 2003, it is discernible that the first paragraph of Section 82(2A) of AVAT Act, 2003 provides that the Commissioner shall not entertain an application for revision without 25% of the demanded amount being deposited. But at the same time the second paragraph containing a proviso, provides that in the event an application is made, the Commissioner may for reasons to be recorded in writing and subject to furnishing of such security as may be deemed fit, admit an application either with part payment or without any payment of the disputed amount of the tax including the penalty. The requirement of giving a reason for granting or not granting the exemption is also an indication that any such application made under the provision of the second paragraph of Section 82(2A) would necessarily have to be entertained and considered, as otherwise the requirement of giving a reason cannot be complied with. In the present case, as the records reveals that the petitioner had filed an application for exempting the payment of the 25% of the demanded amount, the Court is of the view that it is incumbent upon the Commissioner to give a consideration to the said application and pass a reasoned order thereon as deemed appropriate under the law and in the facts and circumstance of the case - petition allowed.
Issues:
Assessment under AVAT Act and CST Act, Penalty imposition, Revision under AVAT Act, Requirement of depositing 25% of demand dues for revision, Exemption from payment of disputed amount, Interpretation of Section 82(2A) of AVAT Act, Consideration of application for exemption, Setting aside communication demanding 25% payment. Assessment under AVAT Act and CST Act: The petitioner was assessed under the Assam Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956, for wrongly issuing a delivery note. A penalty was imposed for this issue, leading to a significant penalty amount. Revision under AVAT Act and Deposit Requirement: The petitioner filed a revision under the AVAT Act against the penalty and reassessment. The Joint Commissioner required a 25% deposit of the total demand dues for admitting the revision petition, failing which the petition would be rejected as per the AVAT Rules of 2005. Exemption from Payment of Disputed Amount: The petitioner sought exemption from paying the 25% demanded amount under the reassessment order. The Commissioner was urged to consider this exemption request based on the provisions of Section 82(2A) of the AVAT Act, allowing for exceptions in certain cases. Interpretation of Section 82(2A) of AVAT Act: Section 82(2A) of the AVAT Act outlines the requirement for depositing 25% of the demanded amount for revision petitions. The provision also includes a proviso allowing the Commissioner to exempt this payment under specific circumstances, subject to recording reasons in writing. Consideration of Application for Exemption: The Court emphasized that if an application is made for exemption from the 25% payment requirement, the Commissioner must consider it and provide a reasoned order. Failure to entertain such applications would render the requirement of providing reasons for the decision impossible to fulfill. Setting Aside Communication and Decision: The Court directed the Commissioner to consider the petitioner's application for exemption from the 25% payment and issue a reasoned order within 15 days. The communication demanding the payment was set aside, and the writ petition was allowed in part based on the above considerations.
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